ACQUISITIONS

6 Months Ended

Nov. 30, 2014

ACQUISITIONS

2. ACQUISITIONS

In August 2014, we purchased a mechanical services company in the U.K. for total consideration of $2.9 million, net of cash acquired of $0.2 million, including estimated contingent consideration of $0.1 million. We are in the early stages of determining the valuations associated with the tangible and intangible assets. Our preliminary purchase price allocation resulted in $2.4 million being allocated to fixed assets and net working capital and $0.8 million being applied to intangible assets.

In July 2013, we purchased a leading provider of industrial rope access services, for total consideration of approximately $12.9 million including net working capital of $1.3 million and $11.6 million allocated to goodwill and intangible assets. We expect $7.9 million of the goodwill recognized to be deductible for tax purposes. The purchase price included $1.9 million of contingent consideration. The contingent consideration is based upon the achievement of operating earnings thresholds over a six year period for an amount of up to $4.0 million.